Navigating the world of car insurance can be as tricky as a rush-hour roundabout. For many Australians, particularly those over 50 who are often looking to streamline expenses and simplify life, finding the right car insurance is about balancing cost with coverage. And now, with major supermarkets like Coles, Woolworths, and ALDI throwing their hats into the insurance ring, the question arises: can you really save on car insurance by buying it where you get your bread and milk?
We understand that every dollar counts, especially when you’re managing a fixed income or retirement savings. So, let’s delve into whether supermarket car insurance is the budget-friendly solution you’ve been searching for.
Coles and Woolworths have been offering insurance products for some time, linking policies to their loyalty programs, Everyday Rewards and Flybuys, respectively. These programs can offer bonus points and ongoing discounts on your shopping, which can be quite appealing. ALDI, on the other hand, joined the insurance market more recently, in June last year, with a promise of ‘everyday competitive prices for Australian shoppers’—sans loyalty program.
But before you toss a car insurance policy into your trolley alongside the weekly groceries, it’s crucial to look beyond the price tag. CHOICE, the leading consumer advocacy group in Australia, has compared over 65 car insurance policies, including those from supermarkets, to help consumers find the best fit for their needs and budget.
CHOICE’s insurance expert, Mark Blades, cautions that while supermarket car insurance may seem convenient, it’s essential to scrutinise the details. ‘You get what you might expect with supermarket car insurance—homebrand products with homebrand quality,’ he says. ‘But they mightn’t be as cheap as you’d hope for.’
In their review, CHOICE found that ALDI and Coles generally offer better features and benefits than Woolworths. However, it’s important to remember that these policies are often just repackaged versions of existing policies from other providers, with the supermarket’s branding added on.
For example, ALDI’s policy is provided by RACQ, Coles’ by Auto & General, and Woolworths’ by Hollard. This means you might find a very similar policy from another provider, potentially at a different price point.
When it comes to car insurance, it’s not just about the discounts on your groceries or the loyalty points you can accrue. You need to ensure you’re not compromising on coverage. It’s worth comparing the policies offered by the supermarkets with those from traditional insurance providers to see where you can get the best value for money.
For instance, ALDI’s comprehensive car insurance policy scores a 64% cover score from CHOICE, offering benefits like $1500 cover for personal items and emergency accommodation or transport after an incident. Coles’ policy, with a 65% cover score, includes unique perks like $200 for theft or damage to groceries in your car at the time of an incident.
Woolworths’ Everyday Comprehensive Car Insurance, however, received a lower cover score of 56% and a price score of 63%, indicating that while it may not be the cheapest, it’s also not the best in terms of coverage.
Ultimately, whether supermarket car insurance is the right choice for you will depend on your individual needs and circumstances. It’s tempting to be swayed by the convenience and potential rewards, but it’s vital to compare the coverage details and not just the price.
Remember, CHOICE is an independent body that doesn’t get paid by insurers, so their reviews can be a valuable resource in your decision-making process.
Before making a decision on supermarket car insurance, it’s essential to weigh the benefits, costs, and coverage details carefully. Each policy has its own advantages and limitations, so taking the time to compare options can help ensure you find the right fit for your needs.
What factors do you consider most important when choosing car insurance? Have you explored supermarket-branded policies, or do you prefer traditional insurers? Share your thoughts and experiences in the comments below!
Also read: Australian Super member says delays in processing his insurance claim almost left him homeless
